What does "LIS pending" indicate in real estate?

"LIS pending" refers to the status indicating that litigation is pending in relation to the property. This term is commonly used in real estate to alert potential buyers, agents, or other stakeholders that there is an ongoing legal issue or dispute concerning the property. It signifies that the sale or transfer of the property might be affected by this litigation, and thus, it cautions interested parties to proceed with awareness of these legal complications.

In real estate transactions, understanding the legal standing of a property is crucial as it can impact the transaction process, timelines, and potential risks involved. Being aware of a "LIS pending" status is important for buyers to assess any encumbrances or liabilities they might inherit if they proceed with the purchase.